Boeing, Europe Freeze `Super-jumbo'

SEATTLE - — An 800-seat "super-jumbo" commercial jetliner apparently is on hold for now, but Boeing still could stake out that market by deciding to stretch its 747 jumbo jet and 777 twinjet.

Boeing and European manufacturers have been studying the possibility of jointly developing a 650to 800-seat airplane. Although they determined it was technically feasible to build the new jet, they said Monday that market demand did not justify the estimated $16 billion to $20 billion cost.

"Market studies do not indicate sufficient volumes to justify the launch of the program today," British Aerospace said in a statement.

Other companies involved include Aerospatiale of France, CASA of Spain and Daimler-Benz Aerospace of Germany. All are partners in Airbus Industrie, Boeing's chief competitor. Airbus is not part of the study team.

Boeing said the companies would continue to monitor the market and meet early next year to review the prospects for a new jetliner.

"It would cost too much and have to be amortized over too few sales," said Paul Nisbet, aerospace analyst with JSA Research Inc., based in Rhode Island.

Nisbet said there is no way Boeing would undertake development of such an airplane alone because of the cost and risk. "If it did that, everybody on Wall Street would put its stock on hard sell," he said.

Nisbet predicted Boeing would decide to go ahead with a stretch version of its 777 that could carry about 400 passengers. He said Boeing could also decide by the end of this year to stretch the 747 to seat more than 500.

Building stretch versions of the two jets would cost less than developing a new airplane.

The 777 and the 747 also fit existing airport gates. A larger airplane would be a problem for many airports because of a larger wingspan.

Airbus is not likely to undertake the development of a super jumbo alone because of the huge cost. However, it is studying the development of a large commercial jet that would compete with the Boeing 747 to carry 500 to 600 passengers.